BFUSD

BFUSD Price

About BFUSD (BFUSD)

BFUSD is a reward-bearing margin asset launched by Binance that offers daily rewards while serving as collateral for futures trading.

• Users can earn daily passive rewards simply by holding the asset in their Binance accounts without the need for active staking.
• The asset maintains a 1:1 conversion rate with USD stablecoins and utilizes a delta-neutral hedging strategy to ensure value stability.
• BFUSD can be used as margin collateral for USD⒈-M Futures trading when Multi-Asset Mode is enabled, maximizing capital efficiency for traders.

What Is BFUSD

BFUSD is a yield-bearing asset designed for use within the Binance ecosystem, specifically targeting futures traders and passive holders. It combines the characteristics of a stable-value asset with a reward mechanism, allowing users to accrue daily earnings in USD stablecoin based on their qualifying balance.

Value moves through the system as Binance generates income from delta hedging and staking strategies, which is then distributed to holders as daily rewards. The asset is "put to work" primarily as collateral for futures trading, where it maintains a high collateral value ratio, enabling users to maintain active trading positions while simultaneously earning yield.

The system scales as the BFUSD supply grows, with Binance managing a specialized reserve fund to absorb potential losses from negative funding rates, ensuring the reward rate remains at or above zero even during adverse market conditions.

What Makes BFUSD Unique

• Delta-Neutral Stability: Unlike traditional stablecoins that rely on treasury bills or over-collateralization, BFUSD uses a delta-hedging strategy involving spot and futures positions to maintain its peg.
• Dual Reward Tiers: It offers a two-tiered reward system featuring a Base APY for all holders and a Boosted APY for active traders participating in USD⒈-M contract activities.
• High Capital Efficiency: The asset provides a near 100% Collateral Value Ratio (CVR), allowing traders to use it as margin without significant haircuts to their collateral value.
• Integrated Risk Mitigation: A dedicated BFUSD Reserve Fund, seeded with 1 million Tether (USDT), is maintained independently of the futures insurance fund to safeguard against negative funding rate impacts.

What Can You Use BFUSD for?

BFUSD is pegged to the US Dollar through 1:1 redeemability with USD stablecoins.

1. Value retention: The asset allows users to hold a digital representation of the US Dollar on the Binance platform, potentially reducing exposure to the price volatility of non-pegged cryptocurrencies.
2. Yield generation: Holders earn daily rewards derived from Binance's delta-neutral hedging income and Ethereum staking rewards, with options for both passive holders and active traders to receive yield.
3. Cross-border settlement / value transfer: The source does not specify use cases for international remittances or general cross-border transfers outside of the Binance ecosystem.
4. Collateralization: BFUSD is specifically designed as collateral for USD⒈-M Futures accounts in multi-asset mode, satisfying margin requirements while continuing to accrue rewards.

How Does BFUSD Work?

BFUSD operates using a delta-neutral strategy where Binance maintains balanced positions in the spot and futures markets. For every unit of BFUSD issued, the platform may purchase an equivalent amount of an underlying asset like Ethereum (ETH) on the spot market while simultaneously opening a short position in the futures market. This approach neutralizes price risk while allowing the platform to collect funding fees, which are periodic payments between long and short traders.

Additionally, a portion of the collateral is used for Proof of Stake activities, such as staking ETH to earn network rewards. The combined income from funding fees and staking is used to calculate the daily reward rate for BFUSD holders. To protect users, Binance utilizes a Reserve Fund to cover costs during periods of negative funding rates, ensuring that the reward amount distributed to users does not fall below zero.

Team Info and Investors

BFUSD is issued and managed by Binance, a global cryptocurrency exchange. The asset is part of the broader Binance Earn and Futures ecosystem. While specific third-party investors for BFUSD were not disclosed in available sources, the project was initially supported by a 1 million USDT seed allocation from Binance to establish its Reserve Fund.

Where can you buy BFUSD?

BFUSD tokens can be traded on centralized crypto exchanges. The most popular exchange to buy and trade BFUSD is Binance, where the most active trading pair BFUSD/USDT has a trading volume of $5,899,444.62 in the last 24 hours.

What is the daily trading volume of BFUSD (BFUSD)?

The trading volume of BFUSD (BFUSD) is $6,130,473.48 in the last 24 hours, representing a 173.30% increase from one day ago and signalling a recent rise in market activity. Check out CoinGecko’s list of highest volume cryptocurrencies.

What is the highest and lowest price for BFUSD (BFUSD)?

BFUSD (BFUSD) reached an all-time high of $1.01 and an all-time low of $0.9969. It’s now trading -0.70% below that peak and 0.30% above its lowest price.

What is the market cap of BFUSD (BFUSD)?

Market capitalization of BFUSD (BFUSD) is $1,319,629,443 and is ranked #71 on CoinGecko today. Market cap is measured by multiplying token price with the circulating supply of BFUSD tokens (1.3 Billion tokens are tradable on the market today).

What is the fully diluted valuation of BFUSD (BFUSD)?

The fully diluted valuation (FDV) of BFUSD (BFUSD) is $1,319,629,443. This is a statistical representation of the maximum market cap, assuming total number of 1.3 Billion ETH tokens are in circulation today.

How does the price performance of BFUSD compare against its peers?

With a price increase of 0.00% in the last 7 days, BFUSD (BFUSD) is underperforming the global cryptocurrency market which is up 4.30%, while underperforming when compared to similar Stablecoins cryptocurrencies which are up 0.60%.